Elon Musk is a consistent presence in the media, often for his innovation or polarizing actions. But in recent days, the news has included public statements about Twitter potentially facing bankruptcy and Tesla’s stock price taking one hit after another. SpaceX seems to be the exception, with the company raising new funding and securing lucrative deals while his other ventures struggle due to a variety of factors.
SpaceX’s new funding and hefty valuation: The cutting-edge rocket and satellite company is raising $750 million in new funding, and it is doing so at a valuation of $137 billion. The round of funding is said to be led by Andreessen Horowitz, also known as a16z, which also participated in Musk’s Twitter buyout in October of 2022.
- Early investors in the company included Founders Fund, Sequoia, and Gigafund.
- SpaceX previously allowed insiders to sell the shares they owned at $77 per share.
Last year, SpaceX achieved around $2 billion in funding, and in May, it received a valuation of $127 billion. The upward trend shows surprising success, considering the state of the global economy and the state of Musk’s other ventures, which have been rife with trouble.
“Despite the economic downturn and private equity being limited, I believe they will find a way to secure more capital. Their innovative vision is the driving force behind their ongoing success.
When it comes to sales, people are magnetically drawn towards the future, legacy prospects, and unique opportunities. Experienced investors and private equity firms usually invest in a mix of low ROI, yet secure investments alongside 10-30% higher risk projects that could yield a high return on investment. Elon Musk has utilized this power of attraction multiple times throughout his successful career,” says Mawer Capital’s Rudy Mawer.
“His credentials, groundbreaking ideas, and the chance to be a part of something that has never been done before on this scale, are what fuel his tremendous fundraising success. He’s setting his sights on an ambitious goal – to fly into space – and people can’t help but be drawn in. I believe this company has the potential of being one of the “unicorn” companies. People are drawn to his track record and vision, believing he can pull off something that has never been done before. While some may see this as a risky venture, they still trust him because of the potential for massive returns if successful” he added.
What makes SpaceX different? There are many reasons SpaceX stands out, but one of the most lucrative is its recent government satellite program. The program launches satellites for government clients, which are used for national security needs, such as performing tasks like climate change research, missile tracking, and surveillance.
- Starshield was only recently revealed by SpaceX, but it has been in operation for years.
- It offers a lot financially to SpaceX, which otherwise relies on private funding and launching rockets.
However, SpaceX does have other pursuits, such as launching cargo payloads and people to the International Space Station for NASA. Eventually, perhaps it will also reach its original goal of making it possible to colonize Mars.
Twitter is struggling on all fronts: There have been various troubles at Twitter, from massive layoffs to technical issues related to the lacking staff. However, most notable are the financial difficulties Musk has faced since taking over the company, which have caused him to publicly state that Twitter was facing bankruptcy.
While there has been some back and forth on whether the massive social media company is actually teetering on the edge, cost-cutting efforts have been seen on multiple fronts. One of its largest data centers was shut down, janitorial services were cut, and there have even been rent problems along the way.
Additionally, Musk’s actions since taking over Twitter have been polarizing, causing some users to move away from the platform in search of alternatives. It has even affected his other businesses, including his flagship automotive company, Tesla.
Tesla is facing a massive decline in its stock: Many factors play a role in Tesla’s dropping stock prices, including macroeconomic factors. However, more than that, dropping China sales and Musk’s drama at Twitter have investors worried, with the stock hitting its lowest point in a year last Friday.
- In 2022, Tesla’s stock price dropped 65%.
- Investors have become concerned over Musk’s recent actions at Twitter and how it is affecting Tesla.
Will Musk’s other ventures affect SpaceX? Twitter seems to affect everything Musk has his name on, including Tesla. Many are starting to wonder if the same will happen to SpaceX, including NASA Administrator Bill Nelson, who recently asked SpaceX President and COO Gwynne Shotwell whether Twitter would distract Musk and affect SpaceX and its work with NASA.
Musk has lost a massive amount of money: Musk is no longer the richest man in the world. In 2021, he was worth $340 billion, but according to the Bloomberg Billionaires Index, his current net worth is around $126 billion. He has lost over $11 billion this year alone, and if SpaceX begins to falter, the number might drop even lower.
